ReNew Energy Global Plc () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sunrun, Inc.

Brookfield Infrastructure Partners LP

ReNew Energy Global Plc

Clearway Energy, Inc.

Sunnova Energy International, Inc.

Atlantica Sustainable Infrastructure Plc

NextEra Energy Partners LP

Altus Power, Inc.

Maxeon Solar Technologies Ltd.

Brookfield Renewable Corp.

Why is ReNew Energy Global Plc ?

Poor Management Efficiency with a low ROCE of 5.87%

The company has been able to generate a Return on Capital Employed (avg) of 5.87% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 26

PRE-TAX PROFIT(Q) At USD 12.88 MM has Fallen at -60.33%
NET PROFIT(Q) At USD 8.48 MM has Fallen at -76.05%
RAW MATERIAL COST(Y) Grown by 16.32% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.70% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ReNew Energy Global Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ReNew Energy Global Plc

-7.7%

-0.10

41.36%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

62.64%

EBIT Growth (5y)

53.53%

EBIT to Interest (avg)

1.78

Debt to EBITDA (avg)

9.26

Net Debt to Equity (avg)

5.71

Sales to Capital Employed (avg)

0.12

Tax Ratio

54.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

72.33%

ROCE (avg)

5.87%

ROE (avg)

1.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.32

EV to EBIT

13.28

EV to EBITDA

9.48

EV to Capital Employed

1.05

EV to Sales

6.17

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

7.91%

ROE (Latest)

10.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NET PROFIT(HY)

At USD 5.54 MM has Grown at 140.47%

OPERATING CASH FLOW(Y)

Highest at USD 249.04 MM

ROCE(HY)

Highest at 9.06%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.58 times

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 12.88 MM has Fallen at -60.33%

NET PROFIT(Q)

At USD 8.48 MM has Fallen at -76.05%

RAW MATERIAL COST(Y)

Grown by 16.32% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.48 times

OPERATING PROFIT MARGIN(Q)

Lowest at 54.6 %

Here's what is working for ReNew Energy Global Plc

Debtors Turnover Ratio

Highest at 6.58 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Cash Flow

Highest at USD 249.04 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Depreciation

Highest at USD 86.85 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for ReNew Energy Global Plc

Pre-Tax Profit

At USD 12.88 MM has Fallen at -60.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 8.48 MM has Fallen at -76.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 54.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 16.32% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 6.57 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income